FX.co ★ Oil Set for Strong Weekly Gain

Crude oil held near $98 per barrel on Friday, finishing the week more than 6% higher, as escalating tensions in the Middle East and ongoing supply disruptions outweighed plans to release additional emergency reserves. Concerns over the security of physical oil flows through the Persian Gulf intensified after US Central Command confirmed that the Singapore-flagged container ship GFS Pride sank while being towed to shore, following a strike by an Iranian projectile in the Strait of Hormuz. Even so, over 40 vessels passed through the strategic chokepoint in the past 24 hours, suggesting that some maritime traffic is still moving.

At the same time, member states of the International Energy Agency agreed to release the remaining 100 million barrels from the emergency stockpile drawdown initiated in March, under renewed pressure from US officials. Separately, reports indicate that Washington is weighing the possibility of easing sanctions on selected vessels carrying Iranian, Russian, or Venezuelan crude.